GM is inexpensive and the largest U.S. automaker should
work toward buying back the government’s stake from its 2009
bailout, said Einhorn, who helps oversee $7.7 billion as
president of Greenlight Capital Inc. The automaker’s European
operations may break even in 2015, he said. Chipotle, the best-performing restaurant stock in the Standard & Poor’s 500 Index
last year, has “one of the fanciest multiples” and the
company’s profit will be hurt by increasing competition, the
short seller said.

Chipotle’s ability to raise prices is limited given
competition from Taco Bell, rising food prices and eventually
increased worker health-care costs, Einhorn said. The price-earnings ratio is 36, compared with 20 for the S&P 500
Restaurants Index, according to data compiled by Bloomberg.

Short Selling

Einhorn, known for betting against Lehman Brothers Holdings
Inc. before it collapsed in September 2008, reiterated his
recommendation from last year’s investing congress that
investors short Green Mountain Coffee Roasters Inc., the maker
of Keurig single-serving coffee brewers, saying competition will
increase. In a short sale, a trader sells borrowed shares,
hoping to replace them later after they fall.

U.S. health insurer Cigna Corp. was also among the stocks
Einhorn recommended today. The money manager disclosed in a July
23 letter that he bought shares in Cigna and Coventry Health
Care Inc. during the second quarter.

Greenlight returned 3.4 percent in the first half of the
year, according to the letter, a copy of which was obtained by
Bloomberg News. Hedge funds gained 1.1 percent, according to
data compiled by Bloomberg.